Madhur and Neeraj were partners in a firm sharing profits and losses in the ratio of 3:2. The Balance Sheet as at 31st March, 2024 was as under: (CBSE 2025)
BALANCE SHEET OF MADHUR AND NEERAJ as at 31st March, 2024
| Liabilities | ₹ | ₹ | Assets | ₹ |
|---|---|---|---|---|
| Capital A/cs: Madhur | 9,00,000 | 17,00,000 | Machinery Investments Debtors Stock Cash at Bank | 7,00,000 4,00,000 11,00,000 2,00,000 1,00,000 |
| Creditors | 6,00,000 | |||
| Bills Payable | 2,00,000 | |||
| Total | 25,00,000 | Total | 25,00,000 |
The firm was dissolved on the above date and the following transactions took place:
(i) Machinery was taken over by creditors in full settlement of their account.
(ii) Investments were taken over by Neeraj at 5,00,000.
(iii) One of the debtors of ₹ 1,00,000 was untraceable. Remaining debtors were realised at 10% less.
(iv) Stock was taken over by Madhur at 50% discount.
(v) Realisation expenses amounting to ₹ 1,00,000 were paid by Madhur.
Prepare Realisation Account.
Solution:
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